Accident Forgiveness

Massachusetts Auto Insurance is a hot subject for insurers across the country.

Over two years ago, Managed Competition changed the MA auto insurance landscape. For the most part, these changes have been a good thing for the MA auto insurance consumer. Massachusetts drivers have seen lower rates, more discount programs, and improved insurance programs.

As an independent MA insurance agency, we get asked about the heavily advertised “Accident Forgiveness” program.

Do you have Accident Forgiveness?

Most companies charge additional premium if they offer an Accident Forgiveness program.

Some accident forgiveness programs are attached to endorsements that offer additional coverage enhancements or programs.

For instance, Vermont Mutual’s accident forgiveness program is included in their “Advantage Endorsement” ($45 annual fee).

Their policy endorsement reads:

Accident Forgiveness –

A policy is eligible for accident forgiveness at policy inception if this endorsement is purchased initially as part of the new policy.

If this endorsement is purchased after policy inception, eligibility for accident forgiveness begins on the first renewal after the endorsement is effective. Accidents that occur before the effective date of the endorsement are not eligible for accident forgiveness.

We will not charge for the first at-fault accident on the policy provided:

a. There are no other accidents being waived on the policy;

b. There are no more than two (2) at-fault accidents on the policy, regardless of the number of drivers;

c. No driver has more than one (1) at-fault accident in a six (6) year experience period.

d. The driver involved in the surchargeable at-fault accident is listed on the Coverage Selections Page; and,

e. You or someon on your behlf reported the surchargeable at-fault accident to us.

A claim payment of at least $500, in excess of any deductible, in which the listed operator is determined to be more than 50% at-fault, is considered an at-fault accident.

Only one at-fault accident per policy will be forgiven during a six (6) year experience period. Once an accident is forgiven all additional accidents that occur within the six (6) year experience period will be surcharged and used in determining SDIP points.

A waived Collision (Part 7) accident will not affect your eligibility for the Deductible Rewards – Disappearing Collision and Limited Collision Deductible coverage provided by this endorsement. 

In addition to Accident Forgiveness, Vermont Mutual Insurance Company’s “Advantage Endorsement” also includes: Disappearing Collision Deductible Program, New Car Replacement Coverage, Auto Loan/ Lease Gap Coverage, Original Equipment Manufacturer Parts Guarantee Coverage, Enhanced Towing & Labor, Emergency Travel Expense Coverage – Lodging and Meals, Enhanced Substitute Transportation, Rental Vehicle Loss of Income Coverage, Personal Clothing and Baggage Coverage, Bail Bonds and Loss of Earnings, and Air Bag – Accidental Deployment Coverage.

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